This study focuses on the impact of an intergenerational sustainability leadership project on the development of students' environmental literacy. The project involved high-school students and older adults in the community who learned and worked together on environmental issues developing original initiatives over a period of three years. The study examines environmental literacy development among the students by conducting interviews and analyzing students' written reports and recorded conversations. The project illustrated several positive social-environmental changes taking place in the community for the first time. The study emphasizes that when environmental education transcends the classroom, combining the forces and capabilities of adults and youth in the community, environmental literacy is developed and intensified. The students' acquaintance with adults within the community brought about common environmental interests, indicating a potential for empowering youth groups to take collaborative action upgrading the quality of life in the neighborhood for the benefit of all its inhabitants.